This affects 35 employees. However, it is still unclear how many of them will be made redundant or employed elsewhere in the company. According to a press release issued by Ringier on Tuesday, the broadcasts have not been able to meet business expectations for some time. After careful consideration of the general conditions, the economic situation and the expected course of business, the Ringier Switzerland management has decided to discontinue production of the "journalistically very well produced but already loss-making and therefore cross-subsidized formats" at the end of the year.
The formats, for which around 35 employees are responsible at the Hagenholz site in Zurich, belong to the Ringier Entertainment Television division. According to the Ringier press release, it will become clear over the next three to four weeks how many employees will be made redundant as a result of the discontinuation of the programs. The period of uncertainty for employees will be kept as short as possible. The majority of the redundancies will take place at the end of 2012 and will be accompanied by a social plan. The editorial teams were informed by the division management on Tuesday morning about the measures decided and the next steps.
As Ringier spokesperson Edi Estermann told SDA when asked, not all programs were unprofitable. However, there was little point in continuing to produce individual formats. The management had therefore taken the fundamental decision to discontinue the entire package. The reason for the red figures is the insufficient advertising and sponsorship income due to the current economic situation. Although Presse TV receives a broadcasting slot on Swiss television and a certain amount of remuneration from the Swiss Broadcasting Corporation SRG, the producers can only finance their programs with difficulty without advertising and, in particular, sponsorship.
Presse TV regrets the exit
The withdrawal of Ringier is regrettable, writes Wolfgang Frei, President of Presse TV, in a press release on Tuesday. What will happen with the vacated broadcasting slots will be discussed shortly with those responsible at SRG and Schweizer Radio und Fernsehen SRF. The cooperation agreement with SRG runs until the end of 2013, and Presse Tv intends to continue this agreement after Ringier's withdrawal at the end of 2012, as Wolfgang Frei continues. The privately produced programs will therefore continue until at least the end of 2013.
Ringier Entertainment Fernsehen will continue to include the Ringier TV Productions and Web TV divisions following the discontinuation of the Presse TV programs. In the television sector, Ringier also holds stakes in Sat.1 Schweiz (40 percent), the TV production company Grundy Schweiz (35 percent) and Teleclub (33.3 percent). Television will therefore remain a strategically important business area for Ringier, the press release concludes. Presse TV has been in existence since 1995 and was originally founded by the media companies Ringier, NZZ and the German-Japanese Development Company for Television Program (DCTP) as trustee of the television activities of German publishing houses. Later, Basler Zeitung and, since November 2007, Axel Springer Schweiz joined as Presse TV shareholders. The cooperation with SRG is governed by a cooperation agreement that expires at the end of 2013.